California's Proposition 61, "the Drug Price Standards Initiative", is simple and straightforward. It mandates that any California state agency that provides funding for prescription drugs may not pay more than the lowest price paid for the same drug by the U.S. Department of Veterans Affairs.
PhRMA, the powerful drug industry lobbying organization, opposes the measure, and is using blatantly dishonest television ads, such as this one featuring Marine Corps Veteran Lamont Duncan, to claim that the measure will increase the price the VA pays for prescription drugs, harming veterans in the bargain...
The ad leads viewers to the same erroneous assumption presented by the state's Legislative Analyst (emphasis added) --- that "drug manufacturers might choose to raise VA drug prices" in response to passage of Prop 61. Worse, the ad erroneously suggests that veterans themselves could be forced into higher co-pays.
As Senator Bernie Sanders, the former chairman of the U.S. Veterans Affairs Committee,
Conservative economist Greg D'Angelo, from Heritage Foundation's Center for Health Policy Studies confirms Sanders point in this explanation published some years ago: "The VA's discounts are mandated by [federal] law." Drug manufacturers lack the power to so much as "negotiate" a higher VA price, according to D'Angelo, let alone unilaterally raise them. And, as Sanders adds, "veterans' drug co-payments are fixed and do not rise even if drug prices go up." In cases where their treatment is for a service-connected condition, veterans "pay no out of pocket costs whatsoever for prescription drugs," the Senator notes.
While Prop 61 is subject to valid concerns, as explained below, under existing federal law, a betrayal of the right for affordable pharmaceuticals to Veterans is not one of them...